Federal Appeals Court Says State Trial
May Proceed in Lawsuit Against HMO

By

Milo Geyelin Staff Reporter of The Wall Street Journal

Updated Sept. 22, 1999 1:14 a.m. ET

Marking a further shift by courts in favor of consumers who want to sue managed-care providers for medical malpractice, a federal appeals panel in Philadelphia allowed a couple with a claim against U.S. Healthcare to proceed to trial in state court.

The ruling is believed to be the most extensive to date to go against the managed-care industry in an evolving and contentious area of medical malpractice law: whether employer-provided...